Mutual Funds mobilise Rs 1.5 tn in FY12

MF

Investors have put in more than Rs1.5 lakh crore in various mutual funds in the first five months of the current fiscal, as against cumulative net outflow of over Rs 70,000 crore in the previous two financial years.

A revival in the stock market and various reform measures being undertaken by the government and regulator Sebi may help the mutual fund industry mobilise further funds in the coming months, say experts.

As per the latest data available with Sebi, there was a net inflow of Rs 1,53,781 crore between April and August 2012 as against total fund mobilisation of Rs 1.24 lakh crore in the corresponding period of last fiscal 2011-12.

However, there was a net outflow of over Rs 20,000 in the entire 2011-12, while a net amount of nearly Rs 50,000 crore moved out of the mutual funds' kitty during the previous fiscal 2010-11.

Prior to that, mutual funds had mobilised Rs 83,000 crore in 2009-10, Sebi data shows.

At gross level, the mutual funds mobilised a total amount of over Rs 30.4 lakh crore in the first five months of the current fiscal, while there were redemption worth Rs 28.9 lakh crore as well -- resulting into net inflow of about Rs 1.54 lakh crore.

This significant level of fund mobilisation has also helped the total asset under management of mutual funds to grow to Rs 7.5 lakh crore as on August 31, 2012.

Mutual funds pool together money from many investors and invest it on behalf of the group, in accordance with a stated set of objectives.

Market analysts expect the trend to pick up in the coming weeks, as the government and Sebi have expressed their intention to revive equity culture in the country and help channelise the household income into stocks, mutual funds and insurance sectors, rather than in idle assets like gold.

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